Wesfarmers (OTCMKTS:NPSCY) and NIPPON STL & SU/S (OTCMKTS:NSSMY) are both mid-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Insider & Institutional Ownership
0.0% of Wesfarmers shares are held by institutional investors. Comparatively, 0.0% of NIPPON STL & SU/S shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Wesfarmers and NIPPON STL & SU/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wesfarmers||$55.60 billion||0.16||$2.26 billion||$2.54||3.75|
|NIPPON STL & SU/S||$51.19 billion||0.00||$1.76 billion||$2.08||N/A|
Wesfarmers has higher revenue and earnings than NIPPON STL & SU/S. NIPPON STL & SU/S is trading at a lower price-to-earnings ratio than Wesfarmers, indicating that it is currently the more affordable of the two stocks.
This table compares Wesfarmers and NIPPON STL & SU/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NIPPON STL & SU/S||4.50%||8.09%||3.70%|
This is a breakdown of current recommendations for Wesfarmers and NIPPON STL & SU/S, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NIPPON STL & SU/S||0||0||0||0||N/A|
Wesfarmers pays an annual dividend of $0.12 per share and has a dividend yield of 1.3%. NIPPON STL & SU/S pays an annual dividend of $0.35 per share. Wesfarmers pays out 4.7% of its earnings in the form of a dividend. NIPPON STL & SU/S pays out 16.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Wesfarmers is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Wesfarmers has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, NIPPON STL & SU/S has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.
NIPPON STL & SU/S beats Wesfarmers on 6 of the 11 factors compared between the two stocks.
Nippon Steel Corporation, together with its subsidiaries, engages in steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions businesses in Japan and internationally. The Steelmaking and Steel Fabrication segment offers steel plates and sheets; bars, beams, shapes, and rods; pipes and tubes; railway, automotive, and machinery parts; and stainless steel and titanium. The Engineering and Construction segment plans, designs, and constructs various construction projects, including industrial plants, environmental and energy plants, civil engineering projects, and large steel structures, such as skyscrapers and oil and gas pipelines. This segment also involved in the manufacturing and sale of industrial machinery, and equipment and steel structures; and waste processing and recycling, and supplying of electricity, gas, and heat. The Chemicals and Materials segment produces and sells various materials, including coal-based chemical products, petrochemicals, electronic materials, and components for semiconductors and electronic parts, carbon fiber, and composite products, as well as products that apply technologies for metal processing. The System Solutions segment provides computer system engineering and consulting services, information technology outsourcing services, and other client-oriented information technology business solutions to customers in manufacturing and consumer products industries. The company serves automotive, energy and resources, construction, appliance, machinery, equipment, and transportation industries. The company was formerly known as Nippon Steel & Sumitomo Metal Corporation and changed its name to Nippon Steel Corporation in April 2019. Nippon Steel Corporation was founded in 1949 and is based in Tokyo, Japan.
About NIPPON STL & SU/S
Nippon Steel & Sumitomo Metal Corporation engages in steelmaking and steel fabrication businesses worldwide. It operates in five segments: Steelmaking and Steel Fabrication, Engineering and Construction, Chemicals, New materials, and System Solutions. The company offers steel plates; hot- and cold-rolled steel sheets and coils, coated steel sheets, color coated steel sheets, electrolytic tin plates, and electrical steel sheets; bar and rod materials; and structural steel products. It also provides pipes and tubes; and railway, automotive, and construction and industrial machinery parts, such as railway wheels, driving mechanisms, axles, couplers, bogie trucks, brake disks, control bogies, brake calipers, test equipment, crankshafts and front axles, aluminum wheels, permanent magnet retarders, die materials, mill rolls, circular forgings, forged products for power generation, and shape-memory alloys. In addition, the company offers titanium products for use in automobiles, architecture, civil engineering and ocean development, aircraft, sports gears and consumer products, welded tubes, PHE, and chemical and electrolytic fields; stainless steel sheets, shapes, plates, and wire rods, as well as strips, clad steel sheets, nickel and nickel alloy products, and crystal series products; and steel slags. Further, it manufactures and markets industrial machinery and equipment; performs construction work under contract; and engages in waste processing and recycling activities, as well as in supplying electricity, gas, and heat. Additionally, the company offers coal-based chemical products and petrochemicals, as well as electronic materials; and materials for semiconductors and electronic parts, carbon fiber and composite products, and products that apply technologies for metal processing. It also provides computer systems engineering and consulting services; and IT-enabled outsourcing and other services. The company was founded in 1949 and is headquartered in Tokyo, Japan.
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